BILL NUMBER: AB 1628	CHAPTERED  09/24/00

	CHAPTER   592
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 22, 2000
	PASSED THE ASSEMBLY   AUGUST 28, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN SENATE   JULY 15, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Kaloogian

                        FEBRUARY 26, 1999

   An act to amend Sections  16061.7 and 16061.8 of the Probate Code,
relating to  trusts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1628, Kaloogian.   Trusts.
   Existing law requires a trustee to serve a notification upon
specified persons when a revocable trust becomes irrevocable, as
specified, or when there is a change of trustee of an irrevocable
trust, informing the recipient of specified information and that he
or she is entitled to receive a true and complete copy of the terms
of the trust upon request.  Existing law provides that no person
receiving this notification by a trustee may bring an action to
contest the trust more than (1) 120 days from the date the
notification by the trustee is served upon him or her, or (2) 60 days
from the day on which a copy of the terms of the trust is mailed or
personally delivered to him or her in response to his or her request
during that 120-day period.
   AB 460 (Ch. 34, Stats. 2000), among other things, proposes to make
various changes in the requirements for notification, including
revision of (2) above, to provide that an action may not be brought
more than 60 days from the day on which a copy of the terms of the
trust is mailed or personally delivered.  It also would make a
related change with respect to a warning required to be included in
the notice in certain circumstances.
   This bill would incorporate all of the changes proposed to be made
by AB 460 with respect to notification other than the deletion of
the reference to the 120-day period.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 16061.7 of the Probate Code is amended to read:

   16061.7.  (a) A trustee shall serve a notification by the trustee
as described in this section in the following  events:
   (1) When a revocable trust or any portion thereof becomes
irrevocable because of the death of one or more of the settlors of
the trust, or because, by the express terms of the trust, the trust
becomes irrevocable within one year of the death of a settlor because
of a contingency related to the death of one or more of the settlors
of the trust.
   (2) Whenever there is a change of trustee of an irrevocable trust.
   The duty to serve the notification by the trustee is the duty of
the continuing or successor trustee, and any one cotrustee may serve
the notification.
   (b) The notification by the trustee required by subdivision (a)
shall be served on each of the following:
   (1) Each beneficiary of the irrevocable trust or irrevocable
portion of the trust, subject to the limitations of Section 15804.
   (2) Each heir of the deceased settlor, if the event that requires
notification is the death of a settlor or irrevocability within one
year of the death of the settlor of the trust by the express terms of
the trust because of a contingency related to the death of a
settlor.
   (3) If the trust is a charitable trust subject to the supervision
of the Attorney General, to the Attorney General.
   (c) A trustee shall, for purposes of this section, rely upon any
final judicial determination of heirship, known to the trustee, but
the trustee shall have discretion to make a good faith determination
by any reasonable means of the heirs of a deceased settlor in the
absence of a final judicial determination of heirship known to the
trustee.
   (d) The trustee need not provide a copy of the notification by
trustee to any beneficiary or heir  (1) known to the trustee but who
cannot be located by the trustee after reasonable diligence or  (2)
unknown to the trustee.
   (e) The notification by trustee shall be served by mail to the
last known address, pursuant to Section 1215, or by personal
delivery.
   (f) The notification by trustee shall be served not later than 60
days following the occurrence of the event requiring service of the
notification by trustee, or 60 days  after the  trustee became aware
of the existence of a person entitled to receive notification by
trustee, if that person was not known to the trustee on the
occurrence of the event requiring service of the notification.  If
there is a vacancy in the office of the trustee on the date of the
occurrence of the event requiring service of the notification by
trustee, or if that event causes a vacancy, then the 60-day period
for service of the notification by trustee commences on the date the
new trustee commences to serve as trustee.
   (g) The notification by trustee shall contain the following
information:
   (1) The identity of the settlor or settlors of the trust and the
date of execution of the trust instrument.
   (2) The name, mailing address and telephone number of each trustee
of the trust.
   (3) The address of the physical location where the principal place
of administration of the trust is located, pursuant to Section
17002.
   (4) Any additional information that may be expressly required by
the terms of the trust instrument.
   (5) A notification that the recipient is entitled, upon reasonable
request to the trustee, to receive from the trustee a true and
complete copy of the terms of the trust.
   (h) If the notification by the trustee is served because a
revocable trust or any portion of it has become irrevocable because
of the death of one or more settlors of the trust, or because, by the
express terms of the trust, the trust becomes irrevocable within one
year of the death of a settlor because of a contingency related to
the death of one or more of the settlors of the trust, the
notification by the trustee shall also include a warning, set out in
a separate paragraph in not less than 10-point  boldface type, or a
reasonable equivalent thereof, that states as follows:
   "You may not bring an action to contest the trust more than 120
days from the date this notification by the trustee is served upon
you or 60 days from the  date on which a copy of the terms of the
trust is mailed or personally delivered to you during that 120-day
period, whichever is later."
   (i) Any waiver by a settlor of the requirement of serving the
notification by trustee required by this section is against public
policy and shall be void.
   (j) A trustee may serve a notification by trustee in the form
required by this section on any person in addition to those on whom
the notification by trustee is required to be served.  A trustee is
not liable to any person for serving or for not serving the notice on
any person in addition to those on whom the notice is required to be
served.  A trustee is not required to serve a notification by
trustee if the event that otherwise requires service of the
notification by trustee occurs before January 1, 1998.
  SEC. 2.  Section 16061.8 of the Probate Code is amended to read:
   16061.8.  No person  upon whom the notification by the trustee is
served pursuant to this chapter may bring an action to contest the
trust more than 120 days from the date the notification by the
trustee is served upon him or her, or 60 days from the day on which a
copy of the terms of the trust is mailed or personally delivered to
him or her during that 120-day period, whichever is later.
